BAE Systems awarded $24.4M contract for administrative management consulting services by the Department of Defense

Contract Overview

Contract Amount: $24,444,863 ($24.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2012-05-17

End Date: 2017-05-20

Contract Duration: 1,829 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SPSS II

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: SPSS II Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully. 3. The duration of 1829 days indicates a long-term engagement for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The contract was awarded by the Defense Contract Management Agency, a key procurement arm within the DoD. 6. The base award amount is over $24 million, representing significant federal investment in consulting. 7. The contract was awarded in 2012 and completed in 2017, providing historical spending context.

Value Assessment

Rating: fair

The contract's value of $24.4 million for administrative management consulting over five years needs further benchmarking against similar DoD contracts. The Cost Plus Fixed Fee (CPFF) pricing structure, while common, carries inherent risks of cost escalation if not rigorously monitored. Without specific performance metrics or comparison data, assessing the true value-for-money is challenging. The fixed fee component provides some cost certainty, but the variable cost component requires close oversight to ensure efficiency and prevent unnecessary expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders, as suggested by the 'no' field, implies a degree of competition. However, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not provided. A competitive process is generally expected to yield better pricing and service options for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of innovative solutions. It ensures that the government is not limited to a single provider, potentially leading to more cost-effective outcomes.

Public Impact

The Department of Defense benefits from expert administrative management and general management consulting services. These services likely support the operational efficiency and strategic planning of defense agencies. The contract's impact is primarily within the federal government's administrative and management functions. The workforce implications are indirect, potentially involving the integration of external expertise with internal government staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the consulting services.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract has a defined end date, providing a clear timeframe for service delivery.
The fixed fee component in the CPFF structure offers some predictability in contractor profit.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and general management consulting. This sector is crucial for government operations, providing expertise to improve efficiency, strategy, and management practices. The federal government is a significant consumer of these services, often seeking specialized knowledge that may not be available internally. Benchmarking this contract's value against other federal consulting engagements of similar scope and duration would provide further insight into its cost-effectiveness.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided for this contract. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process or were involved as subcontractors. However, without specific data on set-asides or subcontracting goals, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and administrative contracting officer within the Defense Contract Management Agency. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through contract award databases, but detailed performance reports or Inspector General involvement specifics are not provided here.

Related Government Programs

DoD Management Consulting Services
Federal Administrative Support Contracts
Professional Services Contracts
Cost-Plus Contracts
General Management Consulting

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Limited information on specific performance metrics makes value assessment challenging.
Broad scope of 'Administrative Management and General Management Consulting Services' could lead to scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. SPSS II

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2012-05-17. End: 2017-05-20.

What was the specific nature of the administrative management and general management consulting services provided under this contract?

The contract, identified by NAICS code 541611, pertains to Administrative Management and General Management Consulting Services. While the specific deliverables are not detailed in the provided data, such services typically encompass areas like organizational structure analysis, process improvement, strategic planning support, policy development, and operational efficiency enhancements. For the Department of Defense, this could involve advising on resource allocation, streamlining bureaucratic processes, improving program management, or developing frameworks for organizational change. The 'BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.' likely provided expert analysis and recommendations to address specific management challenges within the DoD.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types used for similar consulting services?

The Cost Plus Fixed Fee (CPFF) structure is common for complex services where the exact costs are difficult to predict upfront, such as consulting. It allows the contractor to recover all allowable costs plus a predetermined fixed fee, which represents their profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if the scope changes but carries a higher risk of cost overruns. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF provides less direct incentive for the contractor to control costs beyond the initial agreement on the fixed fee. For consulting, CPFF can be advantageous when the scope is evolving, but it necessitates robust government oversight to manage costs effectively.

What was the competitive landscape for this specific contract, and how many bids were received?

This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that the solicitation was broadly advertised, allowing any interested and qualified source to submit a proposal. The data indicates there were 4 bidders ('no': 4). This suggests a moderately competitive environment. While having multiple bidders is positive for price discovery and potentially achieving better value, the true level of competition also depends on the number of proposals submitted, the qualifications of the bidders, and the specific evaluation criteria used. A competition with 4 bidders is generally considered healthy, but further analysis would be needed to determine if it was sufficiently robust to ensure optimal pricing and innovation.

What is the typical duration for federal contracts providing administrative management and general management consulting services?

Federal contracts for administrative management and general management consulting services can vary significantly in duration, often depending on the complexity and scope of the engagement. Contracts can range from short-term advisory projects lasting a few months to long-term strategic partnerships extending over several years. The 1829-day duration (approximately 5 years) for this BAE Systems contract is on the longer side, suggesting a substantial, ongoing need for consulting support within the Department of Defense. Shorter durations are more common for specific task orders or focused problem-solving, while longer periods are typical for strategic initiatives, program management support, or comprehensive organizational transformation efforts.

How does the $24.4 million award amount compare to overall federal spending on management consulting services?

The $24.4 million awarded to BAE Systems represents a significant, but not exceptionally large, sum within the context of overall federal spending on management consulting. Federal agencies across various departments frequently procure management and administrative consulting services to address complex challenges, improve efficiency, and implement new strategies. Annual federal spending on consulting services often runs into the billions of dollars across all agencies. Therefore, while this specific contract is substantial for the services rendered over its five-year period, it is one of many such engagements contributing to the broader federal investment in external expertise to support government operations and objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $81,663,600

Exercised Options: $53,492,512

Current Obligation: $24,444,863

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $5,417,175

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline